Hi again,
We are back with another interesting stock that many people might be following. Again, piggy-backing from our last thesis of Luckin Coffee on how China wants to be the leading country in EV as well as so many other industry sectors, we bring you $NIO.
I was a big supporter of $NIO and made numerous tweets about it and made many people very wealthy in 2020. And despite my advice to exit, some remained and holding bags until this day. But there is a good news for those who are waiting to get back in or hoping to see the high of $66.99.
As you can see from the chart below, the downward pattern is about to be broken and will test $30.31. What you also see is a possible cup formation. As many people believe we are having a bear rally and inevitably take some profit from the recent gains, I believe we will form a cup-and-handle formation and will head higher.
We are not the only one bullish on NIO. Morgan Stanley is as well. And Mizuho. And those who love Tesla ($TSLA), we hear you. I think Elon is so smart and knows how to appease China that they are there to stay but the market is so big that we believe there will be #2 or #3 player that will be worth $100 billion+ if not higher. And with 19.2 million motorcycle (including mopeds) customers rapidly transition into more affordable Chinese EV, I think NIO can grow tremendously.
Hence, we are a buyer at this price. Again, before you make any investment decisions, do your own DD.